Total industrial orders increased 4.3 percent, with domestic demand surging by 7 percent.
Export orders in January rose by a more modest 1.9 percent from the previous month.
Euro-zone demand however jumped by 6 percent.
The Associated Press said that January’s industrial data was the biggest monthly rise since December 2004, and was much stronger than the 1.3 percent increase predicted by economists.
"The numbers are amazing but the strong tailwind from bulk orders isn’t sustainable," Businessweek reported UniCredit economist Alexander Koch as saying.
“Foreign demand, especially from emerging Asian economies, will continue to drive Germany’s recovery."
Data from the German Federal Statistics Office shows that Asia is the country’s second largest export market, and accounted for 14 percent of overseas sales in 2009.
Source: Businessweek, Associated Press